What incites and motivates employees the most? And what is the most effective strategy to retain employees?

Basically what incites and motivates employees is the monetary gain, however additional to this gain there is a requirement that employers or management needs to maintain employees satisfaction and needs to understand his/hers capabilities. This will help to respect individuals self respect and self esteem.

When employee gets this feeling that he is working in kind of family atmosphere or friendly atmosphere he / she gets bonded with the company emotionally or devotional or chance are there both ways.

At least give them what they deserve :)